Question: Which is a true statement about predetermined overhead rates? The relationship between the predetermined overhead rate and estimated annual operating activity is based on several

Which is a true statement about predetermined overhead rates?
The relationship between the predetermined overhead rate and estimated annual operating activity is based on several
variable activity bases.
The predetermined overhead rate equals expected ovrhead costs for the period times the expected activity level.
Firms use predetermined overhead rates because actual overhead costs and activity volumes frequently do not fluctuate.
A job costing system that uses predetermined overhead rates to apply overhead is called a normal costing system.
Which is a true statement about predetermined overhead rates? The relationship

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